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THE ROLE OF DISTRIBUTED GENERATION IN INDIAN
ELECTRICITY PARADIGM
Jitendra Singh Bhadoriya ( School of instrumentation davv ,indore)
Abstract—this paper is an overview of some of the main issues in distributed generation
(DG). It discusses various aspects of DG such as definitions, technologies, distributed power
application, economics, environmental performance, reliability issues, the role of DG in the
new electricity paradigm of India, and the comparative study of DG in India with respect to
some developed country. It also presents some of the challenges that DG systems are
confronting today. In this article, some benefits and potential problems of DG systems are
brought out, and the current status of DG systems operation is presented.
I. INTRODUCTION-
The concept of distributed generation, which is now gaining worldwide acceptance, was
started in the USA almost a decade ago. The earliest electric power systems were distributed
generation (DG) systems intended to cater to the requirements of local areas. Subsequent
technology developments driven by economies of scale resulted in the development of large
centralized grids connecting up entire regions and countries. The design and operating
philosophies of power systems have emerged with a focus on centralized generation. During
the last decade, there has been renewed interest in DG. The relevance of these options for a
developing country context is examined using data for India.
New concerns are emerging in the power industry today. For example, although hydro power
plants are recognized to be environmentally friendly, it is difficult to find new sites for hydro
power plant installations in developed countries. Furthermore, some countries such as
Germany and Sweden have enacted laws to decommission nuclear power plants, and under
public pressure, retired nuclear power plants would not be replaced [1]. Additionally, in the
deregulated power sector of today, it is not easy to convince market players to invest in
multibillion dollar power generation and transmission projects where the payback period may
be very long [2].These issues, and the decentralization of power systems and liberalization of
the electricity sector, along with dramatically growing demand for electricity in developed
countries has made DG an attractive option that has been reconsidered by various entities in
the new electricity market such as customers, power distributors, power producers, regulators
and researchers.
II. DG Definitions
As per Wikipedia collections Distributed Generation (DG) is also known as on-site
generation, dispersed generation, embedded generation, decentralized generation, etc. It
varies from country to country. Over the last century, be it developed nation or developing
nation, on account of rapid industrialization causing high rate of growth in the demand for
electricity, everyone resorted to establishment of large scale centralized generation facility.
IEEE defines the generation of electricity by facilities sufficiently smaller than central plants,
usually 10 MW or less, so as to allow interconnection at nearly any point in the power
system, as Distributed Resources [2] The plants concerned were based on use of fossil-fuel
(solid, liquid as well as gas), hydro, nuclear elements. Due to the economy of scale with large
unit size, it became possible to have big centralized power stations near the sources to deliver
power to load centers through the medium of high voltage transmission lines over a long
distance. From environment point of view as well due to limitation of natural resources, it is
in fact advantageous too to have the plants away from populated areas. Of course like power
grid, gas grid has also been constructed that allows use of less polluting natural gas-based
plants right at the load center, where it may not be uncommon to have waste heat recovery
and use combined cycle plant to achieve higher efficiency and at the same time for heating in
winter days, if the need be. On the other hand Distributed Generation too is a method to
reckon with, particularly when unbundling of power sector has come up with generation,
transmission, and distribution recognized as distinct entities. Low capital investment, local
use of generated power by the load, absence of any high voltage transmission system, etc.
lead to flourishing of this type of decentralized generation. Advancement of technology with
renewable energy sources, gradual reduction in cost, ease of operation and maintainability,
etc., all go in favor of Distributed Generation as source of green power. Also if it is not as
replacement to centralized large generation, it is at least to supplement the entire effort of
generating capacity addition to a great extent. Further in the context of absence of right-of
way for drawing new high voltage lines, it is a boon as it envisages connectivity through low
voltage networks only and that too over short distance. In UK Distributed Generation is
defined [3] as a generation plant that is connected to a distribution network and not to a
transmission network. The US Department of Energy (DOE) defines DG as follows:
“Distributed power is modular electric generation or storage located near the point of use.
Distributed systems include biomass-based generators, combustion turbines, thermal solar
power and photovoltaic systems, fuel cells, wind turbines, micro turbines, engines/generator
sets, and storage and control technologies. Distributed resources can either be grid connected
or independent of the grid. Those connected to the grid are typically interfaced at the
distribution system” [4].In a similar tone in USA it is referred to as small scale generation of
electric power by a unit sited close to the load being served. Both of these justify terming
Distributed Generation as embedded to distribution system. However, as per American
Council for an Energy Efficient Economy for Distribution Power Generation, its is also
known as any technology that produces power outside of the utility, which is in fact the case
for this type of generation. Furthermore, in the literature, terms such as embedded generation,
dispersed generation, distributed energy resources or DER and decentralized generation, have
also been used in the context of DG. The term dispersed generation is usually referred to a
distributed power generation unit regardless of the technology, and whether it is connected to
the grid or
completely independent of the grid [5] In India too effectively it means decentralized small
scale generation directly supplying load and having interconnection at low voltage with
distribution network. Moreover it is very often in the context of electrification of rural areas
including remote villages / hamlets. The above definitions do not specify any criterion or
classification of DG based on their capacity. Although, there is no generally accepted rule or
standard, the following ratings are used in different countries and situations:
1) The DOE considers distributed power systems to typically range from less than a kilowatt
(kW) to tens of megawatts (MW) in size as DG unit [4].
2) The Electric Power Research Institute (EPRI) considers small generation units from a few
kW up to 50 MW and/or energy storage devices typically sited near customer loads or
distribution and sub-transmission substations as distributed energy resources [6].
3) According to the Gas Research Institute, typically between 25 kW to 25 MW generation
units are considered as DG [5].
4) Swedish legislation treats generating units under 1500 kW differently from those unit
capacities higher than 1500 kW. Then, it can be considered that DG capacity in Sweden is
defined as those units under 1500 kW [7].
From the above discussion, it is evident that capacity specification for DG units is not
universally defined. Various generating schemes under completely diverse rating, behavior,
regulation, purpose and locations are currently being considered as DG in the power industry.
III. Indian power sector
India had an installed capacity of 2, 10,951.72 MW (Ministry of Power,) in the centralized
power utilities on 31st March2012. Of this 140976.18 MW is accounted for by thermal power
plants, 39,339.40MW of large hydro plants and 4,780.00 MW of nuclear, 25,856.14 MW of
renewable energy resources (Shown in Table 1). The focus of power planning has been to
extend the centralized grid throughout the country. However the capacity addition has not
been able to keep pace with the increasing demand for electricity. This is reflected by the
persistent energy and peak shortages in the country. This requires an average capacity addition
of more than 10,000MW per year. Centralized generation alone is unlikely to meet this target.
In this context DG is likely to be important. DG also has the advantage of improving tail-end
voltages, reducing distribution losses and improving system reliability. The present installed
capacity of DG is about 13,000MW (10,000MW diesel, 3000MW renewable). The majority of
this is accounted for by diesel engines that are used for back-up power (in the event of grid
failure) and operate at very low load factors. The share of the energy generation from DG is
marginal (about2–3% of the total generation). Apart from the diesel engines, the DG options
that have been promoted in India are modern renewable. India is probably the only country
with a separate Ministry of Non-conventional Energy Sources (MNES). The renewable energy
installed capacity was 205.5MW in 1993 (104.6MW small hydro, 39.9MW Wind). This
increased to 2978 MW in 2001 (as on 31st March2001) and accounted for almost 3% of
India’s installed power capacity (MNES, 2001; Annual Reports MNES, 2000, 2001, 2002).
The growth rate of installed renewable power capacity during the period 1993–2001 was 39%
per year. During the period January 2000–April 2001the installed capacity increased from
1600MW to 2978MW (an annual growth rate of 49%).. The major contributors are small
hydro 25MW which accounts for 1341MW (45%) and wind which accounts for 1267MW
(42%). The installed capacity in Biomass based power generation is 308MW (10.3%), with
most of it coming from biogases based cogeneration. Most of the installed capacity available
from renewable is accounted for by grid connected systems (wind, small hydro and biomass
cogeneration). These accounts for about 3% of India’s installed capacity contribute to about
1–2% of the total generation (due to low capacity factors on renewable). The growth rate has
been significant (above 30% per year). This has been facilitated by an enabling policy
environment and a supportive government. Despite the emphasis on extending the centralized
grid to the rural areas, 78 million rural households (Ministry of Power, 2003b) or 56.5% of
rural households are still un electrified. The recently passed Electricity Act (2003) has made it
a statutory obligation to supply electricity to all areas including villages and hamlets. The act
suggests a two pronged approach encompassing grid extension and through standalone
systems. The act provides for enabling mechanisms for service providers in rural areas and
exempts them from licensing obligations. MNES has been given the responsibility of
electrification of 18,000 remote villages through renewable. The ministry has set up an
ambitious target of meeting 10% of the power requirements of India from renewable by 2012.
In most cases, the areas to be electrified do not have sufficient paying capacity.. The main
recommendations of the Committee are as under :-
1. The concept of Distributed Generation (D.G.) has been taken as decentralized
generation and distribution of power especially in the rural areas. In India, the
deregulation of the power sector has not made much headway but the problem of T&D
losses, the unreliability of the grid and the problem of remote and inaccessible regions
have provoked the debate on the subject.
2. The D.G. technologies in India relate to turbines, micro turbines, wind turbines,
biomass, and gasification of biomass, solar photovoltaics and hybrid systems.
However, most of the decentralized plants are based on wind power, hydra power and
biomass and biomass gasification. The technology of solar photovoltaic is costly and
fuel cells are yet to be commercialized.
3. In so far as the 18,000 villages in remote and inaccessible areas are concerned, the
extension of grid power is not going to be economical. Decentralized plants based on
biomass, gasification of biomass, hydro power and solar thermal power and solar
photovoltaic are the appropriate solution for these areas. A decision with regard to the
available options will have to be taken depending on the feature of each site/village.
4. As regards the remaining un electrified villages, the responsibility should rest
primarily with the State Governments. The Govt. of India would, however, act as the
facilitator to them.
5. As people in many of the electrified villages are very much dissatisfied with the
quality of grid power, such villages also encouraged to go ahead with the Distributed
Generation Schemes. These should also be the responsibility of the State Governments.
6. Though India has made considerable progress in adopting technologies based on
renewable sources of energy these are not yet capable of commercial application on a
large scale.
Most systems are subsidized by the Government or the utility. The power sector has
significant losses and needs to ensure that the DG systems selected are likely to be
cost-effective. For a large and dispersed rural country, decentralized power generation
systems, where in electricity is generated at consumer end and thereby avoiding
transmission and distribution costs, offers a better solution. Gokak Committee had
gone into details about the concept of decentralized generation to meet the needs of
rural masses
IV. DG TECHNOLOGIES & CHALLENGES IN INDIAN SCENERIO
DG technologies are usually categorized as renewable or non-renewable technologies (shown
in table 2). Renewable technologies comprise solar either thermal or photovoltaic, wind,
geothermal or ocean. Usually the location and size of wind power generators is suitable for
connecting to the distribution network; therefore it can be considered as DG. However,
electricity generation from wind usually takes place in wind farms, owned by large power
generation companies; hence these types of generation are usually excluded from DG in the
literature and for the same reasons are also not considered here. The internal combustion
engines (ICE), combined cycles,
combustion turbines, micro turbines and fuel cells are all examples of non-renewable DG
technologies. Among all available technologies, combustion engines and turbines, micro
turbines,
fuel cells and photovoltaic play an important role in DG applications [1]. The Government of
India set up a Commission for Additional Sources of Energy in the Department of Science and
Technology on the lines of the Space Commission and the Atomic Energy Commission to
promote R & D activities in the area. In 1982, a separate department of Non Conventional
Energy Sources was created in the Smalls try of Energy. After a decade, the department was
elevated and converted into a full-fledged Smalls try. The mounting burden of subsidy has
also lead to the introduction of the new legislation referred to above. There are a number of
technologies for distributed generation, the details
of which are given below:
i. The Internal Combustion Engine.
ii. Biomass
iii. Turbines
iv. Micro-turbines
v. Wind Turbines
vi. Concentrating Solar Power (CSP)
vii. Photovoltaics
viii. Fuel Cells
ix. Small-Hydel.
The Internal Combustion Engine: The most important instrument of the D. G systems
around the world has been the Internal Combustion Engine. Hotels, tall buildings, hospitals,
all over the world use diesels as a backup. Though the diesel engine is efficient, starts up
relatively quickly, it is not environment friendly and has high O & M costs. Consequently its
use in the developed world is limited. In India, the diesel engine is used very widely on
account of the immediate need for power, especially in rural areas, without much concern
either for long-term economics or for environment.
i. Biomass: Biomass refers to renewable energy resources derived from organic
matter, such as forest residues, agricultural crops and wastes, wood, wood wastes
that are capable of being converted to energy. This was the only form of energy
that was usefully exploited till recently. The extraction of energy from biomass is
split into three distinct categories, solid biomass, biogas, and liquid bio fuels. Solid
biomass includes the use of trees, crop residues, household or industrial residues
for direct combustion to provide heat. Animal and human waste is also included in
the definition for the sakes of convenience. It undergoes physical processing such
as cutting and chipping, but retains its solid form. Biogas is obtained by an
aerobically digesting organic material to produce the combustible gas methane
There are two common technologies, one of fermentation of human and animal
waste in specially designed digesters, the other of capturing methane from
municipal waste landfill sites. Liquid bio fuels, which are used in place of
petroleum derived liquid fuels, are obtained by processing plants seeds or fruits of
different types like sugarcane, oilseeds or nuts using various chemical or physical
processes to produce a combustible liquid fuel. Pressing or fermentation is used to
produce oils or ethanol from industrial or commercial residues such as biogases or
from energy crops grown specifically for this purpose.
ii. Turbines: Turbines are a commercialized power technology with sizes ranging
between hundreds of kilowatts to several hundred megawatts. These are designed
to burn a wide range of liquid and gaseous fuels and are capable of duel fuel
operation. Turbines used in distributed generation
Vary in size between 1-30 MW and their operating efficiency is in the range of 24-35%. Their
ability to adjust output to demand and produce high quality waste heat makes them a popular
choice in combined heat and power applications.
iii. Micro-turbines: Micro turbines are installed commercially in many applications,
especially in landfills where the quality of natural gas is low. These are rugged and
long lasting and hold promise for Distributed Generation in India.
iv. Wind-turbines: Wind turbines extract energy from moving air and enable an
electric generator to produce electricity. These comprise the rotor (blade), the
electrical generator, a speed control system and a tower. These can be used in a
distributed generation in a hybrid mode with solar or other technologies. Research
on adaptation of wind turbines for remote and stand-alone applications is receiving
increasingly greater attention and hybrid power systems using 1-50-kilowatt (kW)
wind turbines are being developed for generating electricity off the grid system.
Wind turbines are also being used as grid connected distributed resources. Wind
turbines are commercially available in a variety of sizes and power ratings ranging
from one kW to over one MW. These typically require a Smallmum 9-mph average
wind speed sites.
v. Concentrating Solar Power: Various mirror configurations are used to
concentrate the heat of the sun to generate electricity for a variety of market
applications that range from remote power applications of up to 1- 2kW to grid
connected applications of 200MW or more. R & D efforts in the area of distributed
generation applications are focused on small,modular, and dish/ design systems.
vi. Photovoltaics: Photovoltaic power cells are solid state semi conductor devices that
convert sunlight into direct current electrical power and the amount of power
generated is directly related to the intensity of the light PV systems are most
commonly used for standalone applications and are commercially available with
capacities ranging between one kW to one MW. The systems are commonly used
in India and can contribute a great deal for rural areas, especially remote and
inaccessible areas. It can be of great help in grid connected applications where the
quality of power provided by the grid is low. This is yet to be proved. High initial
cost is a major constraint to large-scale application of SPV systems. R&D work has
been undertaken for cost reduction in SPV cells, modules, and systems besides
improvements in operational efficiency.
vii. Fuel Cells: Fuel cells produce direct current electricity using an electromechanical
process similar to battery as a result of which combustion and the associated
environmental side effects are avoided. Natural gas or coal gas is cleaned in a fuel
cell and converted to a hydrogen rich fuel by a processor or internal catalyst. The
gas and the air then flow over an anode and a cathode separated by an electrolyte
and thereby produces a constant supply of DC electricity, which is converted to
high quality AC power by a power conditioner. Fuel cells are combined into stacks
whose sizes can be varied (from one kW for mobile applications to 100MW plants
to add to base load capacity to utility plants) to meet customer needs.
viii. Biomass Based Schemes: This can be considered under three distinct heads,
National Project on Biogas Development, National Programmed on Bio-Mass
Power/Cogeneration and Bio-Mass Gasified Programmer. The gas is piped for use
as cooking and lighting fuel in especially designed stoves and lamps respectively
and can also be used for replacing diesel oil in fuel engines for generation of
motive power and electricity. The Floating Gas Holder Type, that is India or KVIC
model and Fixed Dome Type which is made of brick masonry structure i.e.
Deenabandhu model are among the indigenous designs of biogas plants. A Bag
Type Portable Digester made of rubberized nylon fabric, suitable for remote and
hilly areas, is being promoted. The recently developed methodology of on sight
construction of Deenabandhu model with Ferro cement, which costs about 10 to
15% less as compared to the model constructed with bricks and cement, is getting
popular in the Southern States.
The National Project on Biogas Development was started in 1981-82.About 33.68 lac
families have been benefited upto March 2002. The Community and Institutional Biogas
Plants Programme was initiated in 1992-93. In order to achieve recycling the cattle dung
available in the villages and institutions for the benefit of the weaker sections as well.
Biogas is generally used for motive power and generation of electricity under the
programme in addition to meet the cooking fuel requirement. A total of 3,901 plants,
including 600 night soil based Biogas plants had been installed up to March 2002.
National Programme on Biomass Power/Cogeneration: The Government of India has
initiated a National Programme on Biomass Power/Cogeneration. It aims at optimum
utilization of a variety of biomass materials such as agro-residues, agro-industrial residues,
and forestry based residues and dedicated energy plantations for power generation through
the adoption of latest conversion technologies. These include combustion, incineration,
pyrolysis, gasification etc. using gas turbine, steam turbine, dual fuel engine, gas engine or
a combination there of either for power generation alone or cogeneration of more than one
energy
National Biomass Gasifier Programme: Biomass gasification is the process by which solid
biomass materials are broken down using heat to produce a combustible gas, known as the
producer gas. Common feedstocks for combustion include wood, charcoal, rice husks and
coconut shells. The producer gas can be used directly in a burner to provide process heat or it
can be used in IC engines, but it requires cleaning and cooling for the latter application. It can
also be used as a substitute for diesel oil in duel fuel engines for mechanical and electrical
applications
Encouragement to technologies such as biomass briquetting and gasification for various
applications in rural and urban areas, and R and D on Biomass Production and Gasification,
are the important objectives of the programme. Biomass gasifier systems of up to 500 kW
capacity based on fuel wood have been indigenously developed and being manufactured in the
country. Technology for producing biomass briquettes from agricultural residues and forest
litter at both household and industry levels has been developed. A total capacity of 51.3 MW
has so far been installed, mainl for stand-alone applications.
ix. Wind Energy: The programme was initiated in the year 1983-84. A market-
oriented strategy has been adopted right from the beginning and hence commercial
development of the technology has been successfully achieved. Scientific
assessment of wind resources throughout the country and a series of other
systematic steps have facilitated the emergence of a cost effective technology. The
wind power potential of the country was initially assessed at 20000 MW and
reassessed at 45000 MW subsequently assuming 1% of land availability for wind
power generation in potential areas. The technical potential has been assessed at
13000MW assuming 20% grid penetration, which will go up with the
augmentation of grid capacity in potential States. The Centre for wind energy
technology (C- WET) is coordinating the Wind Resource Assessment Programme
with the States and Nodal Agencies. Wind diesel projects are being taken up in
Island regions and remote areas which are dependent on costly diesel for power
generation .Two machines of 50 kW capacity each have been installed in the first
phase of the project at Sagar Islands in West Bengal. Similar projects are being
considered for Lakshadweep and Andaman and Nicobar Islands.
Solar Power Programme: The solar power programme comprises Solar Photovoltaic Power
Programme and Solar Thermal Power Programmes.
Under the Solar Photovoltaic Programme:, 27 grid interactive SPV projects have been
installed, with an aggregate capacity of 2.0 MW in Andhra Pradesh, Chandigarh, Karnataka,
Punjab, Kerala, Lakshadweep, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu, and
Uttar Pradesh. These are meant for voltage support applications in remote sections of weak
grids, peak shaving applications in public buildings in urban centers and for saving diesel use
in islands. These are expected to generate and feed over 2.6 million units of electricity
annually to the respective grids. In addition, ten projects of 900 kW capacity, are under
different stages of implementation. The solar photovoltaic systems can be used for a variety of
applications, such as rural telecommunications, battery charging, road and railway signaling
which are non subsidized. Only 3 MW out of the total aggregate capacity of 96 MW (9,80,000
systems) is used by the power plants. In so far as rural areas are concerned.
However, the technology is not yet ripe for being considered for DG application in India, as it
is very expensive, and has not yet been commercially tried on a large scale even in the U. S.A.
The technologies referred to above are applied under various schemes for generation of
electricity from renewable sources of energy in the country. A bird’s eye view of the schemes
would give a good insight into the status of Distributed Generation based on renewable
sources of energy.
V. Benefits of distributed generation
Use of distributed generation is one of the many strategies electric utilities are considering to
operate their systems in the deregulated environment. Several DG technologies are showing
promise for this application. Inclusion of DG at the distribution level results in several
benefits, among which are congestion relief, loss reduction, voltage support, peak shaving, and
an overall improvement of energy efficiency, reliability, and power quality[16]. The benefits
obtained by the introduction of DG should be weighed against the costs involved before
deciding on the use
of DG(shown in Table 3). As DG technologies improve and cost decrease, their use is
expected to rise
Installing small-scale distributed DGs instead of an aggregated large-scale DG can improve
the system reliability indices, depending on the locations of DGs, the number of customers
and the sizes of the loads. The index improves if the DGs are located closer to the end of line.
However, the reliability indices improve the most when the aggregated DG is placed at the
end of the line [17].
• Most of the benefits of employing DG in existing distribution networks have both economic
and technical implications and they are interrelated.
The major technical benefits are:
• reduced line losses.
• Voltage profile improvement.
• reduced emissions of pollutants.
• increased overall energy efficiency.
• enhanced system reliability and security.
• improved power quality.
• relieved T&D congestion.
The major economic benefits are:
• deferred investments for upgrades of facilities.
• reduced O&M costs of some DG technologies.
• enhanced productivity.
• reduced health care costs due to improved environment.
• reduced fuel costs due to increased overall efficiency.
• reduced reserve requirements and the associated costs.
• lower operating costs due to peak shaving.
• increased security for critical loads.
. Compared to traditional centralized generation, DG possesses advantages as follows
[18].
• Reducing the transmission and distribution costs, thus reducing energy loss.
• Providing black start capability and spinning reserves, thus improving power reliability.
• Providing improved security of supply.
•Enabling development of sustainable and green electricity thus reducing environmental
resources used by central generation Easy and quicker installation on account of prefabricated
standardized components.
• Lowering of cost by avoiding long distance high voltage transmission
• Environment friendly where renewable sources are used .
• Running cost more or less constant over the period of time with the use of renewable sources
.
• Possibility of user-operator participation due to lesser complexity more dependability with
simple construction, and consequent easy operation and maintenance [19].
VI. Distributed Power Application
Distributed power technologies are typically installed for one or more of the following
purposes:
(i)Overall load reduction – Use of energy efficiency and other energy saving measures for
reducing total consumption of electricity, sometimes with supplemental power generation.
(ii) Independence from the grid – Power is generated locally to meet all local energy needs by
ensuring reliable and quality power under two different models.
a. Grid Connected – Grid power is used only as a back up during failure of maintenance of the
onsite generator.
b. Off grid – This is in the nature of stand-alone power generation. In order to attain self-
sufficiency it usually includes energy saving approaches and an energy storage device for
back-up power. This includes most village power applications in developing countries.
(iii) Supplemental Power- Under this model, power generated by the grid is augmented with
distributed generation for the following reasons: -
a. Standby Power- Under this arrangement power availability is assured during grid outages.
b. Peak shaving – Under this model the power that is locally generated is used fro reducing the
demand for grid electricity during the peak periods to avoid the peak demand charges imposed
on big electricity users.
(iv) Net energy sales – Individual homeowners and entrepreneurs can generate more
electricity than they need and sell their surplus to the grid. Co-generation could fall into this
category.
(v) Combined heat and power - Under this model waste heat from a power generator is
captured and used in manufacturing process for space heating, water heating etc. in order to
enhance the efficiency of fuel utilization.
(vi) Grid support – Power companies resort to distributed generation for a wide variety of
reasons. The emphasis is on meeting higher peak loads without having to invest in
infrastructure (line and sub-station upgrades).
Most of the early adopters of distributed power wanted to stay connected to the grid, which
they used either as a backup or for selling their surplus power to the power companies[ 17 ]
VII. CONCLUSION
India is on right track to pursue development of Distributed Generation with the unbundling of
power sector utilizing captive and co-generation, besides putting all out effort in harnessing
various forms of new and renewable energy. Collective participation of industries, private
entrepreneurs, giant Corporations hitherto engaged in conventional power development is the
essence of such venture. Liberalization of Government policy vis-à-vis support as well as
regulatory mechanism in place is helping to create conducive atmosphere to achieve target set
in this direction.
VIII.ACKNOWLEDGEMENT
For the accomplishment of this thesis work, expression and words run short to convey my
gratitude to many individuals. This research work is an outcome of moral support and
persuasive interest dedicated from many individuals directly or indirectly involved. Though
the idea of the thesis started from characterizing a curricular obligation, never the less it has
taken the interest of learning to ever-new heights for us. I am indebted to MANIT, Bhopal.
I would like to take this opportunity in expressing immense gratitude to my guide Dr. Ganga
Agnihotri, Professor, Department of Electrical Engineering, MANIT, Bhopal, for her constant
inspiration, useful criticism and immense support throughout the work. I am indebted for the
hard work she has put in to produce this report in the best possible form.
I would like to extend my honour to Dr. Appu Kuttan K.K. Director, MANIT, Bhopal,
Dr. R.K. Nema Head of Electrical Department, MANIT, Bhopal, for their blessings and
encouragement.
I am thankful to the Staff Members of Department of Electrical Engineering, MANIT, Bhopal,
for their co-operation in my work. Last but not least I would like to express my sincere thanks
to all of my friends for their valuable support.
Finally, my special thanks to my parents for their moral support and encouragement.
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[11]Ministry of Non Conventional Energy Sources, 2001. Renewable Energy in India,
Business Opportunities, Government of India, March2001.
[12]Ministry of Non Conventional Energy Sources, 2002. Wind power development in India:
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[13]Ministry of Non Conventional Energy Sources, Annual Reports, New Delhi, 1993, 2000,
2001, 2002.
[14]Ministry of Power, 2001. Blueprint for Power Sector Development,
[15]Government of India, New Delhi; available at powermin.nic.in. ASCENT, 1998. Status of
Biomass Gasification Technology, India, October 1998;
http://www.bgtechnologies.net/ankur.htm.
[16]P. Chiradeja “Benefit of Distributed Generation: A Line Loss
Reduction Analysis”2005 IEEE/PES Transmission and Distribution Conference & Exhibition:
Asia and Pacific Dalian, China
[17] S.Rahman,M.Pipattanasomporn “Reliability Benefits of Distributed Generation as a
Backup Source” 2009 IEEE
[18] Q. Kejun , Z.Chengake “ Analysis of the Environmental Benefits of Distributed
Generation “2008 IEEE
[19] S.Mukhopadhyay,B.Singh “Distributed Generation - Basic Policy, Perspective Planning,
and Achievement so far in India” 2009 IEEE
[20 ] H.D.Mathur “Enhancement of Power System Quality using Distributed Generation”
2010 IEEE Conference on power and energy (PECcon2010) nov29-dec1 2010 Kuala Lumpur
Malaysia
role of distributed generation
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role of distributed generation

  • 1. THE ROLE OF DISTRIBUTED GENERATION IN INDIAN ELECTRICITY PARADIGM Jitendra Singh Bhadoriya ( School of instrumentation davv ,indore) Abstract—this paper is an overview of some of the main issues in distributed generation (DG). It discusses various aspects of DG such as definitions, technologies, distributed power application, economics, environmental performance, reliability issues, the role of DG in the new electricity paradigm of India, and the comparative study of DG in India with respect to some developed country. It also presents some of the challenges that DG systems are confronting today. In this article, some benefits and potential problems of DG systems are brought out, and the current status of DG systems operation is presented. I. INTRODUCTION- The concept of distributed generation, which is now gaining worldwide acceptance, was started in the USA almost a decade ago. The earliest electric power systems were distributed generation (DG) systems intended to cater to the requirements of local areas. Subsequent technology developments driven by economies of scale resulted in the development of large centralized grids connecting up entire regions and countries. The design and operating philosophies of power systems have emerged with a focus on centralized generation. During the last decade, there has been renewed interest in DG. The relevance of these options for a developing country context is examined using data for India. New concerns are emerging in the power industry today. For example, although hydro power plants are recognized to be environmentally friendly, it is difficult to find new sites for hydro power plant installations in developed countries. Furthermore, some countries such as Germany and Sweden have enacted laws to decommission nuclear power plants, and under public pressure, retired nuclear power plants would not be replaced [1]. Additionally, in the
  • 2. deregulated power sector of today, it is not easy to convince market players to invest in multibillion dollar power generation and transmission projects where the payback period may be very long [2].These issues, and the decentralization of power systems and liberalization of the electricity sector, along with dramatically growing demand for electricity in developed countries has made DG an attractive option that has been reconsidered by various entities in the new electricity market such as customers, power distributors, power producers, regulators and researchers. II. DG Definitions As per Wikipedia collections Distributed Generation (DG) is also known as on-site generation, dispersed generation, embedded generation, decentralized generation, etc. It varies from country to country. Over the last century, be it developed nation or developing nation, on account of rapid industrialization causing high rate of growth in the demand for electricity, everyone resorted to establishment of large scale centralized generation facility. IEEE defines the generation of electricity by facilities sufficiently smaller than central plants, usually 10 MW or less, so as to allow interconnection at nearly any point in the power system, as Distributed Resources [2] The plants concerned were based on use of fossil-fuel (solid, liquid as well as gas), hydro, nuclear elements. Due to the economy of scale with large unit size, it became possible to have big centralized power stations near the sources to deliver power to load centers through the medium of high voltage transmission lines over a long distance. From environment point of view as well due to limitation of natural resources, it is in fact advantageous too to have the plants away from populated areas. Of course like power grid, gas grid has also been constructed that allows use of less polluting natural gas-based plants right at the load center, where it may not be uncommon to have waste heat recovery and use combined cycle plant to achieve higher efficiency and at the same time for heating in winter days, if the need be. On the other hand Distributed Generation too is a method to
  • 3. reckon with, particularly when unbundling of power sector has come up with generation, transmission, and distribution recognized as distinct entities. Low capital investment, local use of generated power by the load, absence of any high voltage transmission system, etc. lead to flourishing of this type of decentralized generation. Advancement of technology with renewable energy sources, gradual reduction in cost, ease of operation and maintainability, etc., all go in favor of Distributed Generation as source of green power. Also if it is not as replacement to centralized large generation, it is at least to supplement the entire effort of generating capacity addition to a great extent. Further in the context of absence of right-of way for drawing new high voltage lines, it is a boon as it envisages connectivity through low voltage networks only and that too over short distance. In UK Distributed Generation is defined [3] as a generation plant that is connected to a distribution network and not to a transmission network. The US Department of Energy (DOE) defines DG as follows: “Distributed power is modular electric generation or storage located near the point of use. Distributed systems include biomass-based generators, combustion turbines, thermal solar power and photovoltaic systems, fuel cells, wind turbines, micro turbines, engines/generator sets, and storage and control technologies. Distributed resources can either be grid connected or independent of the grid. Those connected to the grid are typically interfaced at the distribution system” [4].In a similar tone in USA it is referred to as small scale generation of electric power by a unit sited close to the load being served. Both of these justify terming Distributed Generation as embedded to distribution system. However, as per American Council for an Energy Efficient Economy for Distribution Power Generation, its is also known as any technology that produces power outside of the utility, which is in fact the case for this type of generation. Furthermore, in the literature, terms such as embedded generation, dispersed generation, distributed energy resources or DER and decentralized generation, have also been used in the context of DG. The term dispersed generation is usually referred to a
  • 4. distributed power generation unit regardless of the technology, and whether it is connected to the grid or completely independent of the grid [5] In India too effectively it means decentralized small scale generation directly supplying load and having interconnection at low voltage with distribution network. Moreover it is very often in the context of electrification of rural areas including remote villages / hamlets. The above definitions do not specify any criterion or classification of DG based on their capacity. Although, there is no generally accepted rule or standard, the following ratings are used in different countries and situations: 1) The DOE considers distributed power systems to typically range from less than a kilowatt (kW) to tens of megawatts (MW) in size as DG unit [4]. 2) The Electric Power Research Institute (EPRI) considers small generation units from a few kW up to 50 MW and/or energy storage devices typically sited near customer loads or distribution and sub-transmission substations as distributed energy resources [6]. 3) According to the Gas Research Institute, typically between 25 kW to 25 MW generation units are considered as DG [5]. 4) Swedish legislation treats generating units under 1500 kW differently from those unit capacities higher than 1500 kW. Then, it can be considered that DG capacity in Sweden is defined as those units under 1500 kW [7]. From the above discussion, it is evident that capacity specification for DG units is not universally defined. Various generating schemes under completely diverse rating, behavior, regulation, purpose and locations are currently being considered as DG in the power industry. III. Indian power sector India had an installed capacity of 2, 10,951.72 MW (Ministry of Power,) in the centralized power utilities on 31st March2012. Of this 140976.18 MW is accounted for by thermal power
  • 5. plants, 39,339.40MW of large hydro plants and 4,780.00 MW of nuclear, 25,856.14 MW of renewable energy resources (Shown in Table 1). The focus of power planning has been to extend the centralized grid throughout the country. However the capacity addition has not been able to keep pace with the increasing demand for electricity. This is reflected by the persistent energy and peak shortages in the country. This requires an average capacity addition of more than 10,000MW per year. Centralized generation alone is unlikely to meet this target. In this context DG is likely to be important. DG also has the advantage of improving tail-end voltages, reducing distribution losses and improving system reliability. The present installed capacity of DG is about 13,000MW (10,000MW diesel, 3000MW renewable). The majority of this is accounted for by diesel engines that are used for back-up power (in the event of grid failure) and operate at very low load factors. The share of the energy generation from DG is marginal (about2–3% of the total generation). Apart from the diesel engines, the DG options that have been promoted in India are modern renewable. India is probably the only country with a separate Ministry of Non-conventional Energy Sources (MNES). The renewable energy installed capacity was 205.5MW in 1993 (104.6MW small hydro, 39.9MW Wind). This increased to 2978 MW in 2001 (as on 31st March2001) and accounted for almost 3% of India’s installed power capacity (MNES, 2001; Annual Reports MNES, 2000, 2001, 2002). The growth rate of installed renewable power capacity during the period 1993–2001 was 39% per year. During the period January 2000–April 2001the installed capacity increased from 1600MW to 2978MW (an annual growth rate of 49%).. The major contributors are small hydro 25MW which accounts for 1341MW (45%) and wind which accounts for 1267MW (42%). The installed capacity in Biomass based power generation is 308MW (10.3%), with most of it coming from biogases based cogeneration. Most of the installed capacity available from renewable is accounted for by grid connected systems (wind, small hydro and biomass cogeneration). These accounts for about 3% of India’s installed capacity contribute to about
  • 6. 1–2% of the total generation (due to low capacity factors on renewable). The growth rate has been significant (above 30% per year). This has been facilitated by an enabling policy environment and a supportive government. Despite the emphasis on extending the centralized grid to the rural areas, 78 million rural households (Ministry of Power, 2003b) or 56.5% of rural households are still un electrified. The recently passed Electricity Act (2003) has made it a statutory obligation to supply electricity to all areas including villages and hamlets. The act suggests a two pronged approach encompassing grid extension and through standalone systems. The act provides for enabling mechanisms for service providers in rural areas and exempts them from licensing obligations. MNES has been given the responsibility of electrification of 18,000 remote villages through renewable. The ministry has set up an ambitious target of meeting 10% of the power requirements of India from renewable by 2012. In most cases, the areas to be electrified do not have sufficient paying capacity.. The main recommendations of the Committee are as under :- 1. The concept of Distributed Generation (D.G.) has been taken as decentralized generation and distribution of power especially in the rural areas. In India, the deregulation of the power sector has not made much headway but the problem of T&D losses, the unreliability of the grid and the problem of remote and inaccessible regions have provoked the debate on the subject. 2. The D.G. technologies in India relate to turbines, micro turbines, wind turbines, biomass, and gasification of biomass, solar photovoltaics and hybrid systems. However, most of the decentralized plants are based on wind power, hydra power and biomass and biomass gasification. The technology of solar photovoltaic is costly and fuel cells are yet to be commercialized. 3. In so far as the 18,000 villages in remote and inaccessible areas are concerned, the
  • 7. extension of grid power is not going to be economical. Decentralized plants based on biomass, gasification of biomass, hydro power and solar thermal power and solar photovoltaic are the appropriate solution for these areas. A decision with regard to the available options will have to be taken depending on the feature of each site/village. 4. As regards the remaining un electrified villages, the responsibility should rest primarily with the State Governments. The Govt. of India would, however, act as the facilitator to them. 5. As people in many of the electrified villages are very much dissatisfied with the quality of grid power, such villages also encouraged to go ahead with the Distributed Generation Schemes. These should also be the responsibility of the State Governments. 6. Though India has made considerable progress in adopting technologies based on renewable sources of energy these are not yet capable of commercial application on a large scale. Most systems are subsidized by the Government or the utility. The power sector has significant losses and needs to ensure that the DG systems selected are likely to be cost-effective. For a large and dispersed rural country, decentralized power generation systems, where in electricity is generated at consumer end and thereby avoiding transmission and distribution costs, offers a better solution. Gokak Committee had gone into details about the concept of decentralized generation to meet the needs of rural masses IV. DG TECHNOLOGIES & CHALLENGES IN INDIAN SCENERIO DG technologies are usually categorized as renewable or non-renewable technologies (shown
  • 8. in table 2). Renewable technologies comprise solar either thermal or photovoltaic, wind, geothermal or ocean. Usually the location and size of wind power generators is suitable for connecting to the distribution network; therefore it can be considered as DG. However, electricity generation from wind usually takes place in wind farms, owned by large power generation companies; hence these types of generation are usually excluded from DG in the literature and for the same reasons are also not considered here. The internal combustion engines (ICE), combined cycles, combustion turbines, micro turbines and fuel cells are all examples of non-renewable DG technologies. Among all available technologies, combustion engines and turbines, micro turbines, fuel cells and photovoltaic play an important role in DG applications [1]. The Government of India set up a Commission for Additional Sources of Energy in the Department of Science and Technology on the lines of the Space Commission and the Atomic Energy Commission to promote R & D activities in the area. In 1982, a separate department of Non Conventional Energy Sources was created in the Smalls try of Energy. After a decade, the department was elevated and converted into a full-fledged Smalls try. The mounting burden of subsidy has also lead to the introduction of the new legislation referred to above. There are a number of technologies for distributed generation, the details of which are given below: i. The Internal Combustion Engine. ii. Biomass iii. Turbines iv. Micro-turbines v. Wind Turbines
  • 9. vi. Concentrating Solar Power (CSP) vii. Photovoltaics viii. Fuel Cells ix. Small-Hydel. The Internal Combustion Engine: The most important instrument of the D. G systems around the world has been the Internal Combustion Engine. Hotels, tall buildings, hospitals, all over the world use diesels as a backup. Though the diesel engine is efficient, starts up relatively quickly, it is not environment friendly and has high O & M costs. Consequently its use in the developed world is limited. In India, the diesel engine is used very widely on account of the immediate need for power, especially in rural areas, without much concern either for long-term economics or for environment. i. Biomass: Biomass refers to renewable energy resources derived from organic matter, such as forest residues, agricultural crops and wastes, wood, wood wastes that are capable of being converted to energy. This was the only form of energy that was usefully exploited till recently. The extraction of energy from biomass is split into three distinct categories, solid biomass, biogas, and liquid bio fuels. Solid biomass includes the use of trees, crop residues, household or industrial residues for direct combustion to provide heat. Animal and human waste is also included in the definition for the sakes of convenience. It undergoes physical processing such as cutting and chipping, but retains its solid form. Biogas is obtained by an aerobically digesting organic material to produce the combustible gas methane There are two common technologies, one of fermentation of human and animal waste in specially designed digesters, the other of capturing methane from municipal waste landfill sites. Liquid bio fuels, which are used in place of
  • 10. petroleum derived liquid fuels, are obtained by processing plants seeds or fruits of different types like sugarcane, oilseeds or nuts using various chemical or physical processes to produce a combustible liquid fuel. Pressing or fermentation is used to produce oils or ethanol from industrial or commercial residues such as biogases or from energy crops grown specifically for this purpose. ii. Turbines: Turbines are a commercialized power technology with sizes ranging between hundreds of kilowatts to several hundred megawatts. These are designed to burn a wide range of liquid and gaseous fuels and are capable of duel fuel operation. Turbines used in distributed generation Vary in size between 1-30 MW and their operating efficiency is in the range of 24-35%. Their ability to adjust output to demand and produce high quality waste heat makes them a popular choice in combined heat and power applications. iii. Micro-turbines: Micro turbines are installed commercially in many applications, especially in landfills where the quality of natural gas is low. These are rugged and long lasting and hold promise for Distributed Generation in India. iv. Wind-turbines: Wind turbines extract energy from moving air and enable an electric generator to produce electricity. These comprise the rotor (blade), the electrical generator, a speed control system and a tower. These can be used in a distributed generation in a hybrid mode with solar or other technologies. Research on adaptation of wind turbines for remote and stand-alone applications is receiving increasingly greater attention and hybrid power systems using 1-50-kilowatt (kW) wind turbines are being developed for generating electricity off the grid system. Wind turbines are also being used as grid connected distributed resources. Wind turbines are commercially available in a variety of sizes and power ratings ranging from one kW to over one MW. These typically require a Smallmum 9-mph average
  • 11. wind speed sites. v. Concentrating Solar Power: Various mirror configurations are used to concentrate the heat of the sun to generate electricity for a variety of market applications that range from remote power applications of up to 1- 2kW to grid connected applications of 200MW or more. R & D efforts in the area of distributed generation applications are focused on small,modular, and dish/ design systems. vi. Photovoltaics: Photovoltaic power cells are solid state semi conductor devices that convert sunlight into direct current electrical power and the amount of power generated is directly related to the intensity of the light PV systems are most commonly used for standalone applications and are commercially available with capacities ranging between one kW to one MW. The systems are commonly used in India and can contribute a great deal for rural areas, especially remote and inaccessible areas. It can be of great help in grid connected applications where the quality of power provided by the grid is low. This is yet to be proved. High initial cost is a major constraint to large-scale application of SPV systems. R&D work has been undertaken for cost reduction in SPV cells, modules, and systems besides improvements in operational efficiency. vii. Fuel Cells: Fuel cells produce direct current electricity using an electromechanical process similar to battery as a result of which combustion and the associated environmental side effects are avoided. Natural gas or coal gas is cleaned in a fuel cell and converted to a hydrogen rich fuel by a processor or internal catalyst. The gas and the air then flow over an anode and a cathode separated by an electrolyte and thereby produces a constant supply of DC electricity, which is converted to high quality AC power by a power conditioner. Fuel cells are combined into stacks whose sizes can be varied (from one kW for mobile applications to 100MW plants
  • 12. to add to base load capacity to utility plants) to meet customer needs. viii. Biomass Based Schemes: This can be considered under three distinct heads, National Project on Biogas Development, National Programmed on Bio-Mass Power/Cogeneration and Bio-Mass Gasified Programmer. The gas is piped for use as cooking and lighting fuel in especially designed stoves and lamps respectively and can also be used for replacing diesel oil in fuel engines for generation of motive power and electricity. The Floating Gas Holder Type, that is India or KVIC model and Fixed Dome Type which is made of brick masonry structure i.e. Deenabandhu model are among the indigenous designs of biogas plants. A Bag Type Portable Digester made of rubberized nylon fabric, suitable for remote and hilly areas, is being promoted. The recently developed methodology of on sight construction of Deenabandhu model with Ferro cement, which costs about 10 to 15% less as compared to the model constructed with bricks and cement, is getting popular in the Southern States. The National Project on Biogas Development was started in 1981-82.About 33.68 lac families have been benefited upto March 2002. The Community and Institutional Biogas Plants Programme was initiated in 1992-93. In order to achieve recycling the cattle dung available in the villages and institutions for the benefit of the weaker sections as well. Biogas is generally used for motive power and generation of electricity under the programme in addition to meet the cooking fuel requirement. A total of 3,901 plants, including 600 night soil based Biogas plants had been installed up to March 2002. National Programme on Biomass Power/Cogeneration: The Government of India has initiated a National Programme on Biomass Power/Cogeneration. It aims at optimum utilization of a variety of biomass materials such as agro-residues, agro-industrial residues, and forestry based residues and dedicated energy plantations for power generation through
  • 13. the adoption of latest conversion technologies. These include combustion, incineration, pyrolysis, gasification etc. using gas turbine, steam turbine, dual fuel engine, gas engine or a combination there of either for power generation alone or cogeneration of more than one energy National Biomass Gasifier Programme: Biomass gasification is the process by which solid biomass materials are broken down using heat to produce a combustible gas, known as the producer gas. Common feedstocks for combustion include wood, charcoal, rice husks and coconut shells. The producer gas can be used directly in a burner to provide process heat or it can be used in IC engines, but it requires cleaning and cooling for the latter application. It can also be used as a substitute for diesel oil in duel fuel engines for mechanical and electrical applications Encouragement to technologies such as biomass briquetting and gasification for various applications in rural and urban areas, and R and D on Biomass Production and Gasification, are the important objectives of the programme. Biomass gasifier systems of up to 500 kW capacity based on fuel wood have been indigenously developed and being manufactured in the country. Technology for producing biomass briquettes from agricultural residues and forest litter at both household and industry levels has been developed. A total capacity of 51.3 MW has so far been installed, mainl for stand-alone applications. ix. Wind Energy: The programme was initiated in the year 1983-84. A market- oriented strategy has been adopted right from the beginning and hence commercial development of the technology has been successfully achieved. Scientific assessment of wind resources throughout the country and a series of other systematic steps have facilitated the emergence of a cost effective technology. The wind power potential of the country was initially assessed at 20000 MW and
  • 14. reassessed at 45000 MW subsequently assuming 1% of land availability for wind power generation in potential areas. The technical potential has been assessed at 13000MW assuming 20% grid penetration, which will go up with the augmentation of grid capacity in potential States. The Centre for wind energy technology (C- WET) is coordinating the Wind Resource Assessment Programme with the States and Nodal Agencies. Wind diesel projects are being taken up in Island regions and remote areas which are dependent on costly diesel for power generation .Two machines of 50 kW capacity each have been installed in the first phase of the project at Sagar Islands in West Bengal. Similar projects are being considered for Lakshadweep and Andaman and Nicobar Islands. Solar Power Programme: The solar power programme comprises Solar Photovoltaic Power Programme and Solar Thermal Power Programmes. Under the Solar Photovoltaic Programme:, 27 grid interactive SPV projects have been installed, with an aggregate capacity of 2.0 MW in Andhra Pradesh, Chandigarh, Karnataka, Punjab, Kerala, Lakshadweep, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu, and Uttar Pradesh. These are meant for voltage support applications in remote sections of weak grids, peak shaving applications in public buildings in urban centers and for saving diesel use in islands. These are expected to generate and feed over 2.6 million units of electricity annually to the respective grids. In addition, ten projects of 900 kW capacity, are under different stages of implementation. The solar photovoltaic systems can be used for a variety of applications, such as rural telecommunications, battery charging, road and railway signaling which are non subsidized. Only 3 MW out of the total aggregate capacity of 96 MW (9,80,000 systems) is used by the power plants. In so far as rural areas are concerned. However, the technology is not yet ripe for being considered for DG application in India, as it is very expensive, and has not yet been commercially tried on a large scale even in the U. S.A.
  • 15. The technologies referred to above are applied under various schemes for generation of electricity from renewable sources of energy in the country. A bird’s eye view of the schemes would give a good insight into the status of Distributed Generation based on renewable sources of energy. V. Benefits of distributed generation Use of distributed generation is one of the many strategies electric utilities are considering to operate their systems in the deregulated environment. Several DG technologies are showing promise for this application. Inclusion of DG at the distribution level results in several benefits, among which are congestion relief, loss reduction, voltage support, peak shaving, and an overall improvement of energy efficiency, reliability, and power quality[16]. The benefits obtained by the introduction of DG should be weighed against the costs involved before deciding on the use of DG(shown in Table 3). As DG technologies improve and cost decrease, their use is expected to rise Installing small-scale distributed DGs instead of an aggregated large-scale DG can improve the system reliability indices, depending on the locations of DGs, the number of customers and the sizes of the loads. The index improves if the DGs are located closer to the end of line. However, the reliability indices improve the most when the aggregated DG is placed at the end of the line [17]. • Most of the benefits of employing DG in existing distribution networks have both economic and technical implications and they are interrelated. The major technical benefits are: • reduced line losses.
  • 16. • Voltage profile improvement. • reduced emissions of pollutants. • increased overall energy efficiency. • enhanced system reliability and security. • improved power quality. • relieved T&D congestion. The major economic benefits are: • deferred investments for upgrades of facilities. • reduced O&M costs of some DG technologies. • enhanced productivity. • reduced health care costs due to improved environment. • reduced fuel costs due to increased overall efficiency. • reduced reserve requirements and the associated costs. • lower operating costs due to peak shaving. • increased security for critical loads. . Compared to traditional centralized generation, DG possesses advantages as follows [18]. • Reducing the transmission and distribution costs, thus reducing energy loss. • Providing black start capability and spinning reserves, thus improving power reliability. • Providing improved security of supply. •Enabling development of sustainable and green electricity thus reducing environmental resources used by central generation Easy and quicker installation on account of prefabricated standardized components. • Lowering of cost by avoiding long distance high voltage transmission • Environment friendly where renewable sources are used .
  • 17. • Running cost more or less constant over the period of time with the use of renewable sources . • Possibility of user-operator participation due to lesser complexity more dependability with simple construction, and consequent easy operation and maintenance [19]. VI. Distributed Power Application Distributed power technologies are typically installed for one or more of the following purposes: (i)Overall load reduction – Use of energy efficiency and other energy saving measures for reducing total consumption of electricity, sometimes with supplemental power generation. (ii) Independence from the grid – Power is generated locally to meet all local energy needs by ensuring reliable and quality power under two different models. a. Grid Connected – Grid power is used only as a back up during failure of maintenance of the onsite generator. b. Off grid – This is in the nature of stand-alone power generation. In order to attain self- sufficiency it usually includes energy saving approaches and an energy storage device for back-up power. This includes most village power applications in developing countries. (iii) Supplemental Power- Under this model, power generated by the grid is augmented with distributed generation for the following reasons: - a. Standby Power- Under this arrangement power availability is assured during grid outages. b. Peak shaving – Under this model the power that is locally generated is used fro reducing the demand for grid electricity during the peak periods to avoid the peak demand charges imposed on big electricity users. (iv) Net energy sales – Individual homeowners and entrepreneurs can generate more electricity than they need and sell their surplus to the grid. Co-generation could fall into this category.
  • 18. (v) Combined heat and power - Under this model waste heat from a power generator is captured and used in manufacturing process for space heating, water heating etc. in order to enhance the efficiency of fuel utilization. (vi) Grid support – Power companies resort to distributed generation for a wide variety of reasons. The emphasis is on meeting higher peak loads without having to invest in infrastructure (line and sub-station upgrades). Most of the early adopters of distributed power wanted to stay connected to the grid, which they used either as a backup or for selling their surplus power to the power companies[ 17 ] VII. CONCLUSION India is on right track to pursue development of Distributed Generation with the unbundling of power sector utilizing captive and co-generation, besides putting all out effort in harnessing various forms of new and renewable energy. Collective participation of industries, private entrepreneurs, giant Corporations hitherto engaged in conventional power development is the essence of such venture. Liberalization of Government policy vis-à-vis support as well as regulatory mechanism in place is helping to create conducive atmosphere to achieve target set in this direction. VIII.ACKNOWLEDGEMENT For the accomplishment of this thesis work, expression and words run short to convey my gratitude to many individuals. This research work is an outcome of moral support and persuasive interest dedicated from many individuals directly or indirectly involved. Though the idea of the thesis started from characterizing a curricular obligation, never the less it has
  • 19. taken the interest of learning to ever-new heights for us. I am indebted to MANIT, Bhopal. I would like to take this opportunity in expressing immense gratitude to my guide Dr. Ganga Agnihotri, Professor, Department of Electrical Engineering, MANIT, Bhopal, for her constant inspiration, useful criticism and immense support throughout the work. I am indebted for the hard work she has put in to produce this report in the best possible form. I would like to extend my honour to Dr. Appu Kuttan K.K. Director, MANIT, Bhopal, Dr. R.K. Nema Head of Electrical Department, MANIT, Bhopal, for their blessings and encouragement. I am thankful to the Staff Members of Department of Electrical Engineering, MANIT, Bhopal, for their co-operation in my work. Last but not least I would like to express my sincere thanks to all of my friends for their valuable support. Finally, my special thanks to my parents for their moral support and encouragement. IX. REFERENCES : [1] A. M. Borbely and J. F. Kreider, Distributed Generation The Power Paradigm for the New Millennium. CRC Press, 2001. [2] “P1547 standard series for interconnecting distributed resources with electric power systems,” IEEE, 1547 Work Group, Tech. Rep., 2003. [3] Suresh Agrawal, “Distributed Generation using Renewable Sources of Energy – an Ideal Option for Remote Village Electrification”, Proc. International Himalayan Small Hydropower Summit, Dehradun, India, Oct 12-13, 2006, pp. 114-121. [4] The US Department of Energy, Office of Distributed Energy Resources, online publications available at: http://www.eere.energy.gov/der/, 2003 [5] T. Ackerman, G. Anderson, and L. Soder, “Distributed generation: a definition,” Electric Power System Research, vol. 57, pp. 195–204, 2001. [6] The Electric Power Research Institute, online publications available at:
  • 20. http://www.epri.com/, 2002. [7] B. M. Balmat and A. M. Dicaprio, “Electricity market regulations and their impact on distributed generation,” in Proc. Conf. on Electric Utility Deregulation and Restructuring and Power Technologies (DRPT 2000), London, 2000, pp. 608–613. [8] Rodrigo “Dissertation on Renewable Energy Sources” dec 22 ,2012 in The Write Pass Journal. [9]Ministry of Power, 2003a. Annual Report 2002–2003, Government of India, New Delhi. [10]Ministry of Power, 2003b. Discussion Paper on Rural Electrification Policies, November 2003, Government of India, New Delhi. [11]Ministry of Non Conventional Energy Sources, 2001. Renewable Energy in India, Business Opportunities, Government of India, March2001. [12]Ministry of Non Conventional Energy Sources, 2002. Wind power development in India: Towards global leadership; New Delhi, October 2002. [13]Ministry of Non Conventional Energy Sources, Annual Reports, New Delhi, 1993, 2000, 2001, 2002. [14]Ministry of Power, 2001. Blueprint for Power Sector Development, [15]Government of India, New Delhi; available at powermin.nic.in. ASCENT, 1998. Status of Biomass Gasification Technology, India, October 1998; http://www.bgtechnologies.net/ankur.htm. [16]P. Chiradeja “Benefit of Distributed Generation: A Line Loss Reduction Analysis”2005 IEEE/PES Transmission and Distribution Conference & Exhibition: Asia and Pacific Dalian, China [17] S.Rahman,M.Pipattanasomporn “Reliability Benefits of Distributed Generation as a Backup Source” 2009 IEEE [18] Q. Kejun , Z.Chengake “ Analysis of the Environmental Benefits of Distributed
  • 21. Generation “2008 IEEE [19] S.Mukhopadhyay,B.Singh “Distributed Generation - Basic Policy, Perspective Planning, and Achievement so far in India” 2009 IEEE [20 ] H.D.Mathur “Enhancement of Power System Quality using Distributed Generation” 2010 IEEE Conference on power and energy (PECcon2010) nov29-dec1 2010 Kuala Lumpur Malaysia